The order, which Mr Ahmadinejad issued by telephone during a visit to Belarus and which flew in the face of expert advice - has triggered warnings of a financial crisis and spiralling corruption amid fears of a capital flight from the country's lending institutions.

The interest rate move theoretically helps the less-well-off, for whom Mr Ahmadinejad has pledged support with cheaper loans. But economists say cutting rates below inflation will scare investors into withdrawing their savings, thereby creating a black market in high interest loans. They also warn of higher inflation as investors redirect their money into property and push up house prices.

"Mr Ahmadinejad's argument is that the lower the interest rate, the more access people will have to money," said one analyst. "But you can't command interest rates down. They have to match inflation. To cut rates, the government has to balance its budget better."

Sounds a bit like the UK circa August 2005, but without the smoke and mirrors, eh?

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ABC News recently said the US were trying to sabotage Iran's currency because of their nuclear activity. Maybe Iran are responding to it : -

The CIA has received secret Presidential approval to launch a campaign for regime change in Iran.

The approval comes in the form of a signed "non-lethal" Presidential finding which would launch a plan that reportedly includes a coordinated campaign of propaganda, disinformation, and manipulation of Iran's currency and international financial transactions, ABCNews.com reported May 22.